13 October 2017
Equities - India
10 Yrs G-Sec
10 Yrs AAA Corp
Flows (USD b)
Note: YTD is calendar year, *Avg
Today’s top research idea
TCS - Sluggish revenue growth (marginal miss)
TCS' 1.7% QoQ CC revenue growth (estimate of 2.2%) was marginally below our
estimate, led by 150bp QoQ realization drop (fell for the second consecutive
quarter). YoY CC growth remains at 6.9%. BFSI (4.7% YoY CC), Retail (-1.7% YoY
CC) and US (3.6% YoY CC) continue to remain weak.
EBIT margin expansion of 170bp QoQ to 25.1% was a positive surprise (estimate
of 80bp expansion). The expansion in margins was contributed by favorable
currency movement and overall improvement in operational efficiencies and
The management cited trends such as second digital wave in BFS and offline
retailers' return to the battlefield as potential positives, even though it remains
uncertain when these may culminate into accelerated growth.
September inflation unchanged, August IIP surprises on the upside
Sluggish revenue growth (marginal miss)
Steady quarter; earnings visibility remains strong
Global Fund allocation to drive anti-malaria business
Both engines firing
Embarking on a new era of corporate governance
Bharti announces acquisition of TTSL – a strategic move
Brace for faster approval and more competition
MCX | Reliance Inds.
Piping hot news
Airtel to buy Tata’s consumer mobile business in a debt-free, cash-free deal
Tata Sons Ltd will sell its consumer mobile business to India’s largest telecom
operator Bharti Airtel Ltd virtually for free,…
Chart of the Day: EcoScope - September inflation unchanged
Retail inflation unchanged at 3.3% in Sep 2017
IIP growth at 11-month high in August 2017 (% YoY)
* Excluding F&B and F&L Source: Central Statistics Office, MOSL
Source: CSO, MOSL
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.